Financial watchdogs welcome compensation move

IRELAND’s financial watchdogs have broadly welcomed new EU proposals aimed at improving the flow of compensation and enhancing customer security should banks fail.

The draft directive, from the EU, proposes an increase in compensation value to customers – through a harmonised deposit guarantee scheme, not too dissimilar to Ireland’s current model – who suffer losses due to fraud or bank failure, and a quicker delivery time.

Addressing yesterday’s sitting of the Joint Oireachtas Committee on European Scrutiny, Central Bank official Paul Molumby said that the directive is to be welcomed and offers confidence that deposit guarantee schemes can assist in maintaining financial stability.